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Financial Maths, STD2 EQ-Bank 25

George has constructed a yearly budget shown below.
  

               Income                      Expenses        
 Salary               $68 450.00   Groceries              $7280.00 
 Interest $825.60   Clothing $3960.00 
     Council Rates  $1740.00 
     Electricity $1890.00 
     Entertainment  $4320.00 
     Insurance $2650.00 
     Loan repayments  $15 840.00 
     Motor vehicle costs  $3180.00 
     Telephone $960.00 
     Work related costs $1250.00 
     Balance  
Total    Total   

 

  1. Calculate George's total income and total expenses.   (2 marks)
  2. Using the information from part (a), balance the budget.   (1 mark)
  3. What is the amount of George's weekly savings? Give your answer to the nearest dollar.   (1 mark)
Show Answers Only

a.   \(\text{Income}=$69\,275.60,\ \text{Expenses}=$43\,070.00\)

b.   \(\text{Balance}=$26\,205.60\)

c.   \(\text{Savings}=$504\ \text{(nearest dollar)}\)

Show Worked Solution

a.    \(\text{Income}=68\,450.00+825.60=$69\,275.60\)

\(\text{Expenses}\)

\(=7280.00+3960.00+1740.00+1890.00+4320.00\)

\(+2650.00+15840.00+3180.00+960.00+1250.00\)

\(=$43\,070.00\)
   

b.     \(\text{Balance}\) \(=\text{Income}-\text{Expenses}\)
    \(=$69\,275.60-$43\,070.00=$26\,205.60\)

  
c.    \(\text{Weekly savings}=\dfrac{$26\,205.60}{52}=$503.953…\ =$504\ \text{(nearest dollar)}\)